Household Budget: 10 Sneaky Saving Strategies

Here’s a timely question that came to Kiplinger’s Personal Finance magazine deputy editor Janet Bodnar… and her response.

"I’m in my 20s, and I’m shocked at how many of my friends don’t seem to understand how to save money now in order to use it for other things in the future. How can I get them to understand this?"

You may have your work cut out for you. A study by Wachovia and the Consumer Federation of America found that among all age groups, young adults ages 18 to 24 are the most likely to say they’re not saving adequately (62 percent versus 52 percent for all Americans).

Asked about what keeps them from saving, they’re more likely than the general public to cite psychological factors: spending to feel good (54 percent versus 29 percent); social pressure from friends or family (38 percent versus 20 percent); trips to the mall (32 percent versus 15 percent); and impulse spending (53 percent versus 37 percent).

Looks like a little reverse psychology is in order. Here are 10 psychological tricks guaranteed to help your friends (and you) spend less and squirrel away more:

1. Save or invest automatically with a bank, a mutual fund or your retirement plan at work so that money is taken off the top of your paycheck before you see it or spend it. The surest way to save is to have someone else do it for you. No matter how much you make, the tendency is to spend it all.

2. Deposit your paycheck directly to savings rather than to your checking account. You can transfer money to pay your bills, but psychologically it’s tougher to withdraw money from savings.

3. Limit yourself to one ATM withdrawal per week, and make your cash last. That way you'll always have a "slush fund."

6. Give yourself a 24-hour cooling-off period if you’re waffling on a purchase. Chances are you won’t go back.

7. Buy a couple of storage bins—even a shoebox will do— in which you can collect credit card and ATM receipts. That will help you get organized, and give you a visual record of your spending.

8. Toss spare change (and even stray singles) into a jar on your desk or dresser, and watch your money grow to hundreds of dollars a year.

9. Each time you resist the temptation to buy a latte or go to a movie, put the money you would have spent into your cash jar. It’s an immediate reward for self-discipline.

10. Once you finish paying off a loan or a credit card balance, continue depositing the payment amount in a savings or investment account.

Take the next step towards your financial goals

We can help choose the right Quicken for you

† Limited time offer of 40% off the list price applies only to the purchase of Quicken Deluxe, Premier, Home, Business & Rental Property for the first year only when you order directly from Quicken by February 20, 2018, 11:59 PM PST. Offer good for new memberships only. Offer listed above cannot be combined with any other offers. Terms, conditions, pricing, features, offers and service options subject to change without notice.

Monitoring alerts, data downloads, and feature updates are available through the end of your membership term. Online services require internet access. Third-party terms and additional fees may apply. Phone support, online features, and other services vary and are subject to change. 14,500+ participating financial institutions as of October 1, 2017.

Standard message and data rates may apply for sync, e-mail and text alerts. Visit www.quicken.com/go/apps for details. Quicken app (“App”) is compatible with iPad, iPhone, iPod Touch, Android phones and tablets. Not all Quicken desktop features are available in the App. The App is a companion app and will work only with Quicken 2015 and above desktop products.

Quicken Bill Pay (Bill Payment Services provided by Metavante Payment Services, LLC) is included in Quicken Premier and above and is available on QuickenBillPay.com as a separate add-on service in Starter and Deluxe. 15 payments per month included in Premier and above.

Purchase entitles you to Quicken for 1 or 2 years (depending upon length of membership purchased), starting at purchase. Full payment is charged to your card immediately. At the end of the membership period, membership will automatically renew every year and you will be charged the then-current price (prices subject to change). You may cancel before renewal date. For full details, consult the Quicken License Agreement. You can manage your subscription at your My Account page.

30-day money back guarantee: If you’re not satisfied, return this product to Quicken within 30 days of purchase with your dated receipt for a full refund of the purchase price less shipping and handling fees. See www.quicken.com/30dayguarantee for full details and instructions.

Quicken for Mac software and the Quicken mobile app are not designed to function outside the U.S.

The VantageScore provided under the offer described here uses a proprietary credit scoring model designed by VantageScore Solutions, LLC. There are numerous other credit scores and models in the marketplace, including different VantageScores. Please keep in mind third parties may use a different credit score when evaluating your creditworthiness. Also, third parties will take into consideration items other than your credit score or information found in your credit file, such as your income.

VantageScore®, Equifax®, Experian® and TransUnion® are registered trademarks of their respective owners.

EQUIFAX is a registered trademark of Equifax Inc. The other Equifax marks used herein are trademarks of Equifax Inc. Other product and company names mentioned herein are property of their respective owners.